Virginian-pilot. (Norfolk, Va.) 1898-1911, 1899-05-11
THE SILVER QUESTION.
A SHORT EXPOSITION.
(By E. Benjamin Andrews3

u.
was rated money for all purposes All
over the world. In England, after 1916,
1t was not full money by statute. bu;
II was So in fact Any debt due in
London could be paid as readily in
silver as in gold, because silver con-
shutting valid discharge OF debts on
the continent and in America, tile
metal was always in demand in Lon
don The system OF silver money was
therefore not i'll effect incoinrlete BY
tho legal disparasement OF silver i'm
Il single land. But when in 1878 Ger
many and the United States notn ION
ed England in dcprivinc silNe. of its
legal character as full money. the sit
uauon was gravely changed. and other
nations soon degraded silver Bullion
silver began to fall in gold price. The
Latin union hesitatcd TO continue tho
coinage of full tender silver. and at
last gave 1t up. The gold price of silver
sank more and more. International
balances could no longer be discharged
III the white metal. Throughout the
nations using gold. silver had become
commodity like iron or copper. Two
most unfortunate consequences waited
upon the change. One was 4 general
fall of prices. and the other the annihi-
latlon Of all fXity in par of exchange
between the gold countries and those
continuing to treat silver as full money.
The denial to silver OF the character
of full money all over the western
world could not fail to dcpress general
prices; that is. TO make grain OF gold
worth more and the average of other
things worth less.
1t is q well-known and universolly
recognized law that general prices tend
10 rise or fall with the volume of fun
money Many friends OF the sole gold
standard have been denying this: but
we now see that they are still sound
upon this point. because TO a man they
rejoice in the new gold output of thu,
last two years. They admit that the
new gold VIII tend to swell the volume
Oh fundamental money. elevate prices
and make times good This is true.
ana OF course the movement In 1873 and
the subsequent years. when the basal
money of the West was halVed in vol
ume. must have had the reverse effect.
That this was the main cause of the
extraordinary fall III general prices
which has affected one part of the
world for the last quarter of a century
must be admitted by all acquainted
with the economic history OF the times
anu also Nerscd i'll monetary theory
Other causes have helped. but are in
significant beside this. This general
tali OF prices occasioned two very un-
happy specific results. One of these
was the introduction of injustice into
All outstanding time contracts Debt.
onS had agreed 10 pay so many dollars.
nut as every dollar had more value at
date of payment than when the note
was written. more value was paid than
either party expected would be paid.
ihc legal and enforceable PAYMENT of
debts meant tho overpayment OF them
Ihis was sweeping injustice because
the debts affected reached 10 billi6n,
of dollars. 1t was an unfortunate in
Justice. All injustice is unfortunate
put one which. as in this case. hurts
mostly the productive classes and helps
mostly the unproductive. is peculiarly
bad for society. The other specific III
effect OF the fail In general prices was
ton.
Failing prices always dishearten pro-
ducers. One does not like Ia invest in
commodities when in IL month they are
| certain To be worth less than he pays
hut such investment is necessary If
you arc going 10 produce new wealth
men, therefore, hesitate to undertake
,ne inakinS OF new wealth. In o.her
words. they hoard their money, or in
vest it in any form of security which is
sure To bring ii back To them Ii il re-
turns without any interest at all they
pront because each dollar Con account
oil falling prices of labur's products) is
more valuable when returned than when
rent Here is explained the rcmarka BILE
pientifulness of money in banks. which
Is d nhenomenon of the recent hard
times You cannot lend ii. because IL
isn't in demand for the uses of pro-
duction. This idle money. instead of
proving the suiiicicncy of the general
STOCK oil money. proves precisely he re-
verse. Make the general stock largo
enough to prevent all further fan ~
prices. and these piles of bank money
will move out at once. to he cmnlove1
in the new industry which stable nric,.
soon would make. II will no snij IN,
much producing still tol,as nlnca 80.
tainly: nothing hui dcafh viii al,o.