The sun. [volume] (New York [N.Y.]) 1833-1916, 1898-02-07
.,cIryTrrTo" BrxrrxEsrsx.

-.a,,pN and decisive ICJuNNiOhs VIZ SANN ~
!pno House Of Representatives, OF the Senate
uoo,n,,on declaring the national debt 10 be
I,"v,S,nv payablo in deprecated silver, has
"nsormed nnblic confidence In the maintenance
- ,ho cold standard, and, In that respect, has
Ia a GOOD effect. The all but unanimous vote
Hst,o Renubllcan members oftho House against
~. resolution, and the equally unanimous vote
=, Tho nemocrats in It's favor. coupled with their
S.oio rod Intention to repudiate. II possible,
A.. Covernment' s obligation to pay gold, 10 &C
800 "a an indication that tho coming cleo
.,ons for new members Of Congress Will turn on
az choice between the gold and the silver stan
so,ds and that on this issue the Democrats will
.ooin be beaten, as they wero last year.
T.n oncning speech OF Mr.. Dingley, the Re-
.,,Iioon leader of the House. againet the Sen
20 ro.oIution, was a mastery exposure Of the
ssnhi.,icol confusion OF legal with moral right,
~ hitch the supporters OF the resolution had
.ouubt to Justify themselves. AS Mr.. Dingley
.oInted ont. tho Government can, II IL pleases.
candidate not merely a part but the whole OF Its
Asbts. II can offer to pay not only in silver dol.
lars worth less than half rs much as gold dol.
lars. but in copper and paper worth little more
,b.n nothing, and its creditors will have no legal
rcaress, It is n question Of honor and not one
of technical liability. Having borrowed gold
and received gold and led tho world to believe
that IL intended to pay in gold or Its equivalent,
the Government cannot, without discredit and
disgrace. attempt to pay In anything else. This
4, the issue now put before the country and the
ncmocrats must meet 1t. What they propose is
partial regulation, and no other words ade-
nu.,ely describe II. More than this. their pro-
ro.ed repudiation embraces that of private, mu-
ricipal. corporation and State debts rs well as
those Of the Government, since the same prin-
ciple Is involved in all.
Mr.. Dipgley is. nevertheless. far from being o
rold monometallist. He takes his stand upon
the st. Louis platform. which. besides declaring
for the maintenance Of the gold standard,
pIedges the Republican party to the promotion
Of an International bimetallic agreement, and,
IN his Mondays speech, he expressed his con.
yiction that such an agreement was not imprac-
ticable. He said he was opposed to bimetallism
only when attempted by this country alone, and
no claimed the concurrence In his views OF
"every scientific bimetallist in tho world, out
aide OF politics." meaning. presumably, the
British bimetallists. headed by Mr.. Arthur
]. Balfour, the French, of whom Monsieur
Maline, the French Prime Minister. is leader,
and the various other distinguished European
advocates OF the restoration of silver to free
coinage by international agreement.
The bimetallism to which Mr.. Dingley thus
applies the name OF scientific" is, however,
fully as unscieptiflc as the proposed bimetallism
Of this country independently. which he con-
dennis as leading. in effect, to silver mono
metallism. No system or theory can rightly be
called scientific which disregards actual facts,
and assumes as facts things which are nero
hctions. Now, international bimet allism. equally
with independent bimetallism, disregards the
fact that tho relntive yalue IF rold IN that nf
silver. like the relative value of each of them to
the values of other commodities. is fixed by the
dealings OF mankind in the markets of the
world. 1t also assumes as a fact the fiction
that treaties and compacts between Govern
ments can control the conduct of the citizens
OF those Governments without exception, and
have the effect OF n universal ratification. In
other words, 1t proposes to substitute for a re-
suit arrived at by free choice, one which shall
proceed from diplomatic or legislative action.
We have. in this country. for example, q statute
which declares a gold coin Of 25s grains weight
and nine-tenths fine to be $40. and, therefore.
fixes the price Of bar gold at $40 for every 25s
grains Of the metal, nine-tenths fine. Still,
there Is no statute declaring how many
OF wheat or corn, or pounds of.
cotton, or tons Of coal. or days labor $40
in gold shall buy. and II there were, 1t could
not be enforced. The price of bar gold in
London is quoted at from II shillinzs and 10
pence to 70 shillings per ounce, which means that
tho owner OF bar gold who does not choose to
wait to have it coined at the Mint can exchange
at the Bank OF England for coin ready for inn
mediate delivery at the rate of from II shillings
and 10 pence to 70 shillings per ounce. What
nc can do with his gold In the form Of coin. after
he gets 1t, is n matter for him to find out by try
Ing the marka. The In w dnaa not ottopnDt thn
impossible task OF controlling his bargaining. |
What, therefore. statute law cannot do for gold |
1t certainly cannot do for silver.
How futile mere statute law Is to override in
matters OF value the judgment of the individual
citizen, we saw, in this country, year after year, |
ouring the suspension Of specie payments from
1862 10 1879. An act of Congress said that tho
Greenoack dollar should be of equal value with
the dollar In gold, but whom people bought and
bola commodities between themselves they paid
no regard TO the act. but put their own estimate
upon tne greenback as compared with gold. |
Inc conviction prevailed widely that IL the ma |
t'oh tailed to suppress the rebellion Of the South. |
efh states, the greenback would become worth
aesS' and. therefore, its value In the market huc. |
'uatea with the defeats and the victories of our |
armies In the field, and with the prospects of the |
hnai result OF the war. Even after the collapse
y oohtederacy the delay of the Government
IN resuninE specie payments and the doubt
tnat 1t ever would resume them kept the green
oack oeiow par for nearly fourteen years.
seeing the futility OF mere enactment TO fix
values the late Francis A. Walker of Boston
evolved the theory that while statute law could |
NOT override the law OF supply and demand
snu arbitrarily make silver. measured by other
commodities moro valuable than It is, II could, |
soveftheless' by creating a new demand for It,
VI charging that already existing. increase It's
s1chanee value, Just as the now and increased
uemahd Tor copper for electric purposes, or Of
.e"pnor ior making smokeless powder, raised
'ne price OF those articles and made them com.
..a"a IN exchange moro OF other articles than
taes oia. His argument was like that of the
aasnsh Parliament. years ago, which passed an
W recurring the bodies OF the dead TO be buried
- ""oheh shrouds. in order to increase the do
Ma"u ior woollen fabrics, and thus raise
~ value OF wool. He asserted that BY
"" auk SILVER coin a legal tender In the
pa,monto OF debts. 1t would be more sought for
q ian eoid by debtors, and that the demand for
,"a' created would raise it's value approx
na.'iyt 10 par with gold. He did not consider
,uA' 'his artificial demand would last only as
I'M. y 10 mere were old debts to be maid which