Willmar tribune. [volume] (Willmar, Minn.) 1895-1931, 1899-11-01
NOT ON A GOLD STANDARD.
gardinE Standards in the
United States.


We are constantly being told that
the United States is now under the
gold standard by law. One of the
regular correspondents of the Inter
Ocean, Mr.. Thomas Hitchcock, who
writes over the name of Mathew
Marshall, says in a recent letter: ''The
gold standard is now established by
law and can be overthrown only by
new law, but it's permanence rests on
the public opinion" We understand
that Mr.. Hitchcock is one of the mil
lionaires of New York and is an able
and interesting correspondent, yet he
is constantly making assertions just as
erroneous as the one just quoted He
is not an advocate for the destruction
of the paper money issued by the gov
eminent, but wants it redeemable in
gold only.
The standard is an important matter,
so let us examine and stand by the facts
in the case. In 1873 it was enacted by
the United States law that the gold
dollar of 25.S grains of standard gold
"shall be the unit of value.' The
quoted words are as the law stands in
an official copy. That law has never
been repealed, but in 1878 we partial
ly remonetized our silver dollar and
made provision for it's future coin
age. That law of 1878, in speaking of
our standard silver dollar, says
(which coins together with all silver
dollars heretofore coined by the United
States, of like weight and fineness,
shall be legal tender at their nominal
values, for all debts and dues, public
and private, except where otherwise ex-
pressly stipulated in the contract u
This part of the law of 1878 still stands
unrepealed. Up to June 80, 1899, we
have coined 4SO,657,231 silver dollars
under this law of 1878, and we are
compelled by later enactment to con-
tinue coming them at the rate of $751;.
100000 per year. We have all of these
silver dollars at the command of the
government of our people as full lega1
tender money, Except where otherwise
expressly stipulated in the contract.
AS the full legal tender of the silver
dollar was restored in 1878, tainted
however, with the exceptional clause
just quoted, yet perfectly regardless
of the gold dollar being named as ''the
unit of value.'' This law of 1878 vir
tually annulled this unit of value
phrase. The legal tender function Of
money is the special attribute thai
makes a selected commodity money
after it is coined. We believe in hold
ing firmly to the doctrine that gold anc
silver money, at our existing coinage
ratio of sixteen to one, is wise anc
equitable. This position is not antag
onistic to the wisdom of the govern
ment issuing a large amount of paper
money, all redeemable in gold or sill
yer money at the demand of the holder
but at the option of the government a:
to whichever metal may be most con
venient to the government for it's re
demption.
Many of us see danger lurking under
the issue of unredeemable paper money
by the government, but we think i
would be very far preferable to the is
sue of paper money under the auspices
of our national banks secured by theil
assets and controlled by their human
seltishness or whims. There is no ne
cessity of adopting either one of thes'
methods, as the government can safel,
and wisely should issue much large
amount of paper money than it nov
does, made redeemable in gold or sill
yer as long as the government hold
the option as to the kind of meta
it should use for it's redemption.
There is a fallacy lurking under tn
phrase unit of value" or standard o
value" which is very mischievous. Thi
word fallacy has often been pointed on
in very clear way by some of the mos
scholarly and acute financial thinkers
A standard for measuring either weigh
or distance must have from its yer,
name something precisely fixed as to it
own weight or dimensions. Thus W
have our legal yard It is not the lengt]
of certain metallic yardstick at al
temperatures, but at one temperatur
only, which temperature is precisel
named by statute law. A standard var
then is not piece of metal of certai
length at all temperatures, but is tn
distance between two points measure
by a piece of metal at a given tempera
ture. From the very nature of thing
the exchangeable value of certai
quantity of gold or silver will always b
subject to the rigid economic law Q
supply and demand, and their e,
changeable value will alter in obcd
ence to this natural law. AS these con
modities are subject to a constan
change in exchangeable value, strictl
speaking, neither can be fixed stant
ard of exchangeable value. We have n
quality like temperature that can be al
piled to them and make them perm:
nent or fixed as standards of exchange
able value. I most decidedly prefer t
use the phrase "agents of valuation,
| rather than standards of value" q
more precise or scientific.
'Standards of value is a converter
phrase for us to use, like the phras
''currents Of electricity" Every ele'
trician speaks of currents of electricit,
yet in the same breath they will tell 20
electricity is not a thing, like water {
steam, but natural force as myster
Gus as gravity. The exchangeable valu
of money or any other commodity
always subject to that personal fore
sentiment or desire. The individu,
settles in his own mind, through tn
subtle force, sentiment or desire, VIII;
he will accept or what he will pay
exchange for services or commoditit
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