The broad ax., 1898-01-08

VI a. A0t4eeo3 - &c @4t-oc "
Representatives.. Friday, Deeem-
Der 81, 1895.
8. That so far from bimetallism
meaning the current circulation of
the 'sunit Of value" coins of both |
metals, it is not necessary that
there shall be an actual coinage of
either of such units, and to show
how entirely distinct is a question
of circulation from that of a stand
ardsof value / have only to refer to
Lord Hershelps report of the In
dian currency committee of 1898,
now before me, which points ont
that Scandinavia, Holland and CAM
ada have the Colds tnldard with little
or no gold coin In circulation; that
Canada and the Dutch East Indies
have the gold standard, without
even mint or any gold coinage al
all, and that Austria then had a gold
standard, with minis closed against
the private coinage of gold as well
as silver, and currency of incon-
vertible paper; and the Yves Indies
circulation based on gold, but
consisting OF token silver made
legal tender to an unlimited
amount.
9. That IN order toestinate value,
time, weight or extension, there
must be standard. Our standard
OF weight is the troy pound of the
mint. Our standard unit of all
measures of extension is the yard,
and is adjusted to the old bronze
| yard measure obtained of England
| in 1856, and kept at Washington.
| Our standard unit of dry measure
| is the Winchester bushel, contain
ing 2l50.42 cubic inches, and so
on.
| For all these things there has to
| be standard, and with respect to
| all but money the idea of the stand
| ard is easily understood, as it
simply measures the weight, extern
sion or capacity of things, but is
| not given or taken in exchange for
What it measures. Money, how
ever, is not only the measure, but
also the equivalent of values, and
is given and taken in exchange for
what it measures. Among al!
i svTiIized nations value is estimated
BY Its price in money. Money is
therefore standard of value, and
our law provides that the dollar
shall be the unit of that standard.
II 10. That the standard of value is
also the standard of deferred pay
ments for all future or time con-
tracts. To illustrate: As it is COM
Petent for an individual TO say,
"For this horse you now sell me
III will pay you one year hence,
| so bushels of wheat or 100 bush
els of corn" soft is competent for
the government to say what shall
constitute its "dollar," or stand
ard Of value, or deferred payment,
so that all contracts for future
payments shall be payable in SO
many grains of silver or so many
grains of gold, designating the
number of each co constitute q
dollar or be the equivalent of its
unit of value.
II In the individual contract just
referred to, one bushel of wheat
was fixed on as equivalent to two Of
corn, or, in other words, the ratio
was 2 to I as between the two
. things in which the deferred pay
ment might be made. When pay.
ment became due, if il was easier
: | to pay in 100 bushels of corn than
so in wheat, the debtor would pay
in corn, and if there was a large
. number of such contracts that
would increase the demand for corn
and tend TO bring it upon parity
with wheat at the ratio of 2 to l.
Ill. That the Sherman act oil
1873, having deprived silver of its
function as a standard Of value, the
whole burden Of the functions OF
primary money was thereby de-
volved on gold alone. thereby large
" enhancing its purchasing power
with respect 10 all commodities,
including silver. This is clearly
shown in the article entitled SSH
sef,s in volume %. Encyclopedia
britannica, page 81.
IRl2. That at the very time silver
was degraded by being deprived Of
its junction as astandzrd Of value,
the silver IN ; silver dollar was
worth 3 cents more than the gold
lin a gold dollar.
/.