Kansas agitator. [volume] (Garnett, Kan.) 1890-1905, 1899-03-24
THE GRESHAM LAW.
IN HARMONY WITH THE b.
METALLIC THEORY.
The Real Purpose OF Decentralization is
tho Perpetuation OF Debt-Parity to
BE Maintained Is Between Money and
Property.

Advocates of bime.allism oughe not
TO be on the defensive, but ought to
vigorously take the offensive, in main
tanning the relations of the so-called
Gresham law to the double standard.
The substance of that law is that
money of an inferior purchasing power
dsplaces money of superior purchas-
ing power. The proposition is correct,
nor is there any mystery about it.
1t is only one exemplification of the
law which is the corner stone OF po-
ltical economy that men seek to graf
ify their desires with the least exer-
ton. Boys in the streets observe the
Gresham law. When they play keeps
they use their cheaper marbles.
But when Gresham recited it, he did
not mean what nearly all of us, mono
metallists and bimetallists alike, are
J apt to think he meant. He did not re-
fer to coins made of two metals, gold
! and silver He referred to full weight
and light weight coins made OF the
same metal He knew nothing OF the
theory of bimetallism. He knew moth
ing of the science of money. There
was no such science in those days
There Is no such science now. Inc
science of money is like a new con-
tinent Just emerging from the ocean,
and many of its principles are SUN
hidden beneath the waters.
The visible principles OF the new
science are beginning to be studleu'
but the Science of money" has not yet
been written.
To anv gold standard advocate IN
dertakes by bluff and brow beating 10
make the reader think he understands
the science of money, and that II Is
Gust about deep enough for him., DO
Won not succumb to him. He does
not know any more about it than you
do: and the chances are, not as much'
Nobody knows very much about IL.
We are Just beginning to learn. But
when Gresham wrote the propositlon'
he uttered better than he knew. he
unclaimed the great fundamental law
OF the double standard. And when the
gold standard advocates cite the law
as against bimetallism, they have no
intention of being consciously funny
They simply walk over the law, so that
~ II were a snake it would bite them
without seeing it. But we must I'M
derstand the law. and the people must
understand it, if we ever expect 10
make the double standard paA OF our
monetary system.
What is bimetallism? 1t is a mon
etary system in which each OF the TWO
metals has % an unrestricted right OF
coinage at fixed legal ratio, and w
an unrestricted right of legal tender
at that ratio.
That is all there is of it. The en-
tire proposition is summed up in those
two conditions. Some persons might
odd n third-that a debtor has the op-
ton to pay with either metal. But
this Is already contained in the Sec
ond. for if both metals are legal TELL
dor the debtor will naturally choose
the cheaper in discharging his debt
simnle as these two inclusive propo-
s;tions are. there is yet worldwide
confusion of the subject. endangerins
tho success of bimetallism at the next
election in the belief which has almost
universal acceptance, which dominates
oil economic thought, and pervades all
economic debate and literature, that
the essence of bimetallism is the con-
current circulation of the two metals
IN the same country This is not true.
The belief ignores the two points just
stated. either wholly or in part, which
two points constitute the entire theory
of bimetallism; and substitutes raise
theorv The concurrent circulation OF
the two metals in the same country
has nothing to do with bimetallism,
so far as relates to the success OF the
principle. If the market ratio ana tne
mint ratio coincide, the two metals
will circulate concurrently in the same
country Even If the two ratios 90
not coincide, the two metals Will cir
culate in the same country to greater
or less degree, unless the divergence OF
the ratio is large or long continued.
II the market ratio and the mint ratio
do not agree, and even If one metal
should entirely leave the country, the
two metals will still circulate concur
rently. one in one country and :1e
other in some other country; concur
rently in point of time. which is the
important point to us; even If not con
currently in point of geographical dis
tribution, which is point of not the
slightest consequence to us.
II the United States were to open
the minis to the free coinage of botn
metals at 16 to 1, and declare both to
be a legal tender; and If as result
either silver or gold were to go out
of circulation and stay out of circula-
ton for a thousand years, leaving only
one metal in circulation all that time
we should still be bimetallic country;
and bimetallism would be in success
full operation here all the time. And
+ a. &C. tho commOnest thing to hear